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Division 3 Calculation of the life underwriting risk module

United Kingdom

Original text. Later amendments are not shown.

The life underwriting risk module set out in Article 105(3) shall be equal to the following:

SCR life = ∑ i,j Corr i,j × SCR i × SCR j

where SCRi denotes the sub-module i and SCRj denotes the sub-module j, and where ‘i,j’ means that the sum of the different terms should cover all possible combinations of i and j. In the calculation, SCRi and SCRj are replaced by the following:

  • SCR mortality denotes the mortality risk sub-module,

  • SCR longevity denotes the longevity risk sub-module,

  • SCR disability denotes the disability – morbidity risk sub-module,

  • SCR life expense denotes the life expense risk sub-module,

  • SCR revision denotes the revision risk sub-module,

  • SCR lapse denotes the lapse risk sub-module,

  • SCR life catastrophe denotes the life catastrophe risk sub-module,